POST UTME AAUA 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is increased by 20%, what is the new quantity demanded?
A. 60 units
B. 80 units
C. 40 units
D. 50 units
Question 2
A consumer's indifference curve is steeper than another consumer's indifference curve. Which of the following statements is true?
A. The first consumer is more risk-averse.
B. The first consumer has a higher income.
C. The first consumer has a higher marginal rate of substitution.
D. The first consumer has a lower marginal rate of substitution.
Question 3
A government in Nigeria is considering implementing a policy to increase the production of wheat. Determine the effect of the policy on the equilibrium price and quantity of wheat in the market, assuming the demand and supply functions are: Demand: Qd = 100 - 2P, Supply: Qs = 2P - 50.
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price remains the same, quantity increases
D. Price remains the same, quantity decreases
Question 4
A central bank uses the following monetary policy rule: i = 2 + 0.5\( P - 2 \), where i is the interest rate and P is the inflation rate. If the inflation rate is 3%, what is the interest rate?
A. 4%
B. 5%
C. 6%
D. 7%
Question 5
A monopolistically competitive firm has a demand curve given by P = 100 - Q^2. If the firm produces 10 units, what is the total revenue?
A. ₦900
B. ₦1,000
C. ₦1,100
D. ₦1,200
Question 6
A consumer in Nigeria has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the goods are ₦10 and ₦20 respectively, determine the consumer's budget constraint and the optimal quantities of the goods.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 7
The diagram below shows the supply and demand curves for a product. If the price of the product increases, what will happen to the equilibrium quantity?
A. The equilibrium quantity will increase.
B. The equilibrium quantity will decrease.
C. The equilibrium quantity will remain the same.
D. The diagram is not sufficient to determine the effect on the equilibrium quantity.
Question 8
A firm's demand function is Q = 100 - 2P, and its supply function is Q = 2P - 10. Find the equilibrium price and quantity.
A. P = 20, Q = 40
B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are wL = 10 and rK = 20, what is the optimal input combination that minimizes the firm's \cost?
A. L = 4, K = 16
B. L = 16, K = 4
C. L = 8, K = 8
D. L = 2, K = 2
Question 10
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are 100, imports (M) are 80, foreign investment (F) is 20, and domestic investment (I) is 10, what is the country's balance of payments?
A. 30
B. 20
C. 10
D. -10
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what will be the percentage change in output?
A. -5%
B. 0%
C. 5%
D. 10%
Question 12
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its marginal revenue?
A. Increase
B. Decrease
C. Remain the same
D. Become indeterminate
Question 13
The concept of scarcity is central to the study of economics. Which of the following best describes the concept of scarcity?
A. The unlimited availability of resources to meet unlimited wants.
B. The limited availability of resources to meet unlimited wants.
C. The unlimited availability of resources to meet limited wants.
D. The limited availability of resources to meet limited wants.
Question 14
A firm's demand curve is given by Q = 100 - 2P. If the firm increases its price from $10 to $15, what is the percentage change in quantity demanded?
A. -20%
B. -30%
C. -40%
D. -50%
Question 15
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. Calculate the country's balance of trade.
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

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